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2015 (2) TMI 329 - HC - Income TaxComputation of deduction u/s 10B - Tribunal dismissed the appeal filed by the Revenue holding that it was only an apprehension of the Assessing Officer that the assessee had shifted profits for the purpose of claiming deduction under Section 10B and upheld the order of the CIT (Appeals) with regard to the deletion of disallowance made under Section 40(a)(i) on the commission paid to overseas agents while computing deduction allowable under Section 10B - Held that:- Tribunal had accepted the plea of the assessee that in granite dimensional blocks trade, price may vary depending upon size of the block and uniformity in colour, defects etc., as granite is a natural product and if there is any mole, crack or difference in colour, the same could not be exported and hence there are lot of wastages. The Tribunal while allowing the appeal of the assessee held that the sale of dimensional granite blocks to the assessee by the three companies was 131.37 CBM, whereas the sale of dimensional granite blocks by the three companies to the third parties at 8 to 17 CBM. Hence, the huge volume purchased by the assessee could have tilted the sale price in favour of the assessee. The Tribunal was of the view that based on the conjectures and surmises, the Assessing Officer made comparison of the sale price and reduced the profit while computing deduction under Section 10B of the Income Tax Act. We find that on fact the Tribunal had clearly come to the right conclusion that there is no reason to accept the findings of the Assessing Officer, which is bereft of details and based on incomplete investigation. - No substantial question of law arises for consideration - Decided against revenue
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